International Paper (IP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,685,000 | 42,080,000 | 39,054,000 | 40,947,000 | 44,282,000 |
| Property, plant and equipment | US$ in thousands | 10,150,000 | 10,431,000 | 10,441,000 | 10,945,000 | 13,004,000 |
| Fixed asset turnover | 1.84 | 4.03 | 3.74 | 3.74 | 3.41 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,685,000K ÷ $10,150,000K
= 1.84
The fixed asset turnover ratio for International Paper Co. has fluctuated over the past five years. It decreased from 1.67 in 2019 to 1.64 in 2020, indicating a slight decline in efficiency in generating sales from its fixed assets. However, the ratio improved to 1.85 in 2021, implying that the company was able to generate more revenue from its fixed assets compared to the previous year. The ratio further increased to 2.03 in 2022, showcasing a significant improvement in asset utilization efficiency.
In 2023, the fixed asset turnover ratio slightly decreased to 1.86 but still remained relatively high, indicating that International Paper Co. is efficiently utilizing its fixed assets to generate revenue. Overall, the company has demonstrated a generally positive trend in effectively leveraging its fixed assets to drive sales over the past few years.
Peer comparison
Dec 31, 2023